Spencer

so your concern is that the employees who stopped deferring because they thought there was no match will come back and cry foul when the match is allocated? I'm sure there will be some grumbling, but I think you are fine. Allocating the match is in compliance with the doc and favors the employees.

I have 61 loans in this plan so I'd rather not use some sort of workaround. I think I'm going to attempt modifying the crystal reports as Tom suggested. thanks for all input though!

Yes, loan amortization schedules are rather basic. I've talked to Relius and they have advised there is no way to create a custom report as the loan module is separate and info cannot be accessed by Report Writer.

I have a takeover plan with loans. The reports from the prior admin show all loans as 100% vested. Relius applies vesting to loans. The client wants loans to continue to be reflected as they have been (100% vesting). Anyone know how I can override vesting for loans to show them as 100% vested? :confused: Thanks!

Does anyone have a letter communicating a new fee schedule or fee increase that they would be willing to share?

Since it is a DC plan, I'm thinking yes, but I've never seen a target be participant-directed. Any reasons why it shouldn't be?

I see your point. I was hoping that by refinancing it would be considering a new loan and therefore not a violation of the level amortization rule. :confused:

We have a takeover plan in which the participants previoulsy were allowed to have multiple outstanding loans. The plan administrator would like to amend the loan policy to allow only one outstanding loan for existing and new loans. They have requested for the multiple outstanding loans be consolidated into one loan per participant. The participants seem to agreeable to this. My question is how do we do this. The only time I've done loan consolidation is when a new loan is taken. Can I consolidate the loans being certain not to exceed five years from the first loan? What interest rate should I use? Current prime plus 2% (as stated in the loan policy) or an average of the previous loan rates? Any suggestions or advice will be greatly appreciated.

thank you both so much

Is a Form 5500 required for 457 plans? Basic question I know, but I'm not familar with govt. plans at all and I can't find any specific guidance. :confused:

I've never had that situation, but I think your instincts are correct. I would file a 5500 until the assets reach zero, but I can't give you a site or find any guidance on this either. anyone else out there have an experience like this?

I've never worked with a VEBA or grantor's trust before. I have a client who has one and I'm requesting info for the to complete Form 5500. What do I ask for as far as financials?

While gathering information for a new takeover client, we have discovered that their adoption agreement (sponsored by the investment company) from 1993 was never signed and executed. The original effective date of the plan was 1988 and they do have a signed document establishing the plan. However, since 1993 it seems the plan has been operating without a document. I have never experienced such a problem and am at a loss as to how we correct. Do we use Walk-in CAP?

To whom are checks being made payable? IRS? If so, I have experienced that problem as well. Have the checks for federal tax withholding made payable to the bank where you will be depositing the taxes with the 8109 coupon. Taxes will be remitted to IRS and credited to TIN same as before. Not sure about electronic filing.

Due to error by employer (or their payroll service), a participant (NHCE)who elected to defer the maximum allowable under the plan was capped at $6,200 in 1999 (calendar year plan)instead of $10,000. He was not capped due to 415 or document limits - employer just goofed. Obviously, participant is upset. He also missed out on about $800 in matching contributions. How does employer make participant right? Any suggestions will be appreciated.

Some banks and financial institutions will set up an IRA for just this purpose - to invest money tax deferred until you're eligible for your company's plan. Ask about a "conduit" IRA. If you do decide to roll money into an IRA, it must be a "traditional" IRA, not a Roth, SIMPLE or educational IRA.

you are correct. If refunded within 2 1/2 months, they're taxable (contributions and applicable gain/loss) in the first year in which they could have been deferred. After 2 1/2 months, they're taxable (contributions and gain/loss)in year distributed. The only exception is if the excess contribution (NOT including gain/loss)is less than $100, then it's always taxable in year distributed. Refer your associate to the instructions for the Form 1099-R. Here's a link to IRS website where you can dowload instructions http://www.irs.gov/forms_pubs/forms.html

A client's accountant recently told us that we no longer have to reduce earned income by the contribution to the self-employed individuals. There are no common law employees in this plan so once we reduce for the self-employed taxes, we're done according to him. Is this correct?

I have a participant who took a pre-TEFRA loan for $300,000 amortized over 30 years to purchase a house. In 1996, he stopped making payments. The loan was deemed a distribution, included in his taxable income and a 1099R was issued. The loan plus accrued interest was then re-amortized and he began making payments again. Now he has retired. Does the loan just disappear when he takes a distribution since he's already been taxed on it?

Plan installation charges usually vary depending on the type of document used (standardized prototype, non-standardized prototype, volume submitter, individually designed, etc.). I've seen them range from $500 to $3000. If you use a standardized prototype document, you are not required to file for individual determination with IRS.

Our office administers a commingled MPP and 401k plan with individual brokerage accounts as well as six pooled funds. As Ervin says, the document must state funds will be commingled. We have a established a Master Trust with investment company and it is clearly labeled so on each fund and all brokerage accounts. We prepare monthly statements on a cash basis and contributions deposited during the month are half-weighed. We prepare an annual "true up" report upon final determination of net earnings (it's an LLC) and "true up" contributions do not received earnings. Our software allows us to set up more than one source for employer contributions so we have set up MPP as a separate source. This makes it easy (well, easier) to break out for 5500 reporting purposes. This plan requires an accountant's opinion and we've never had any problems.

What type of contributions were not funded? Top Heavy? Contribution specified in plan document? Or are you worried that no PS contribution has been made for several years? [This message has been edited by Spencer (edited 01-05-2000).]

Going part-time is not a distributable event. As pax said, check your plan document to see if in-service withdrawals are allowed. I'm guessing the reason you mention Top Heavy status is that you don't want to include this participant's account balance in determining T/H for the plan subsequent to her distribution. Even if you could pay her out now, you would still have to add back her distribution (and any others) for a period of five years.

I have a client with a 401k plan with self-directed accounts. One of the participants wants covered call writing as an investment option. The only investments specifically excluded under plan's investment policy are collectibles under section 408(m). Does anyone have experience with this type of investment? Is it okay to allow in qualified plan? Thanks.

I have takeover case on a PPD standardized prototype with a discretionary non-elective contribution with a non-integrated allocation formula. The plan was amended to allocate a flat $100 contribution to each participant. Doesn't this contradict the allocation method in the adoption agreement (which is pro-rate on compensation)? Would this be an operational defect?